NY A02918

Banking board shall prescribe minimum interest rates and calculation methods for mortgage escrow accounts annually prior to October 1st, rather than up to once every three months

Banking board must establish by regulation the method for calculating minimum amounts required to be maintained in escrow accounts for one to six family residences and cooperative apartment properties

Banking board shall prescribe escrow calculation methods that reduce balances to as near zero as prudently possible after required payments are made

Exemptions apply where existing contracts contain express disclaimers of interest payment obligations, express provisions for calculating escrow balances, or where payment would violate federal law

Act takes effect 120 days after enactment, with authority for banking board to adopt necessary rules and regulations immediately